Nation Adds Only 96,000 Jobs in August

Jobs growth slowed to 96,000 in August. Economists had expected 125,000. June and July were revised lower by a total of 41,000 jobs, the government reported this morning (Sept. 7). The unemployment rate dropped to 8.1% from 8.3% in July, but that reflected 368,000 people dropping out of the labor force, reports MarketWatch. The stock market will likely rise in response to the bad news, because stocks are now inversely related to economic performance. The Federal Reserve meets next week and is highly likely to announce still another snort of liquidity -- probably a central bank bond-buying program. Earlier this week, stocks soared on expected future liquidity, or money-printing, in Europe.

Comments

The unemployment rate dropped to 8.1% from 8.3% in July, but that reflected 368,000 people dropping out of the labor force, reports MarketWatch.
Hey, that is a shocker.

The stock market will likely rise in response to the bad news, because stocks are now inversely related to economic performance
The stock market has nothing to do with America, the American economy or any "market". It is a gamed and manipulated joke.

The Fed and their leader are IDIOTS, Same with Geithner. Banks have cash coming out their butts, they are not lending, no jobs are being produce (in America anyway, many in China) and there is NOTHING the Fed can do to "jump start" the economy, I am SO tired of hearing the BS about QE I II and III. QE has dome NOTHING except debase and wreck our currency.

A freshman in Economics could figure his out but not the dorks running/ruining our country.

Romney/Obama, who cares, they are both owned by Wall Street and it won't matter which one is elected and I really don't care. I'll vote for Ron Paul in a protest vote..... Or maybe write in Hillary Clinton.

I have put forward my opinion on this. Every time there is TALK (not necessarily action) on a central bank providing liquidity, the stock market soars in the U.S., and normally rises in other nations, too, but not as much. I believe the reason is that the speculators in the pits drive the market up when such an announcement (or leak) is made. Perhaps more importantly, the high-frequency traders, who account for 75% of market activity, turn their machines into overdrive on any hint. On Thursday the Europeans announced plans -- not action -- for a bond-buying program that pushed U.S. stocks up in a huge rally. Several times Europe has sent U.S. stocks zooming with some (often cockamamie) plan that doesn't eventuate. Stocks have more than doubled since early 2009 while the economy has sputtered along. This faux liquidity (and actual liquidity, such as QEl, QEll and QElll that will be announced by the Fed next week) has accounted for more than half of the move of the stock market since early 2009. So there is an inverse relationship between stocks and the economy now. These hints of future liquidity, and the actual providing of same (some of the time) would not be necessary if the economy were actually growing at a respectable rate. Wall Street roots for Main Street to suffer so the Fed can throw out some more hints, and sometimes actually toss out more liquidity. It is sick, but I am going along with it in my own portfolio. Will this end ignominiously? Of course. When? Wish I knew. Best, Don Bauder